The special meeting of the Tyler City Council was called to order at 7:00 p.m., on May 19, 2011, at the Tyler Fire Hall. Mayor Thomsen and Council Members Harper, Mundt, and Petersen were present. Staff Present: Beck, Petersen, and Tolsma. Guests Present: Dub Lutterman, Robert Wolfington, and Bill Helget.

The agenda was approved with the addition of item 5.A Police Contract Discussion by the Council. Motion was made by Mundt, seconded by Petersen, and unanimously carried.

Bill Helget gave the Council a presentation regarding the water rate study and how the proposed water rates were arrived at. Helget noted that according to his estimates there are 503 residential connections and 109 commercial connections to the City’s water system. Helget informed the Council that based on the direction of the Council at the May 2, 2011 meeting, all multi-unit residential facilities would have the same base water rate per unit as a single family residential house and that the base rate for commercial users would depend on their service line size, with larger connections having a higher monthly base rate. Helget also noted that the water rate schedule consisted of three separate usage rate schedules that would phase in over the next three years, while also being in compliance with the State of Minnesota’s water conservation regulations. City Administrator Tolsma also presented the Council with a letter from the City’s financial consultant Shannon Sweeney of David Drown Associates stating that Mr. Sweeney was in agreement with the water rate schedule presented by Mr. Helget and that he would recommend setting the rates in place soon to ensure that the water department could begin building a reserve sufficient for the size of the project. Motion was made by Petersen, seconded by Mundt, and unanimously carried to approve Resolution 11-5 setting the City of Tyler’s water rates.

Under Public Express Larry DeBoer was present to discuss issues regarding the ability to park for sale vehicles on Tyler Street in front of the DeBoer dealership. Larry stated that he and Police Chief John Spindler had talked several times about the legality of parking vehicles with dealer license plates on Tyler Street and that from the sources he had talked to the vehicles could legally be parked there. Police Chief Spindler stated that he had been told the vehicles could not be parked on the street the way they were currently licensed. The Council directed staff to look into the legality of the situation and allow the vehicles to be parked on Tyler Street as long as all laws were complied with and it did not present a safety hazard to citizens.

Bill Helget from Bolton & Menk Engineering was present to review bids with the Council and give recommendations for further action. Helget noted that bids for all three components of the water project came in under the engineer’s estimate and that the City of Tyler was also eligible for grant funds from the Green Project Reserve Program. Helget informed the Council that if awarded the funds the City would receive a 25% principal forgiveness grant that could be applied to certain eligible costs. Helget stated that the amount could be between $450,000 and $500,000 dollars. Helget also recommended that City Council authorize all three components of the project because of how favorable the bids were and how low the interest rate would be on the bond through PFA. City Staff agreed with the engineer’s recommendation. Motion was made by Mundt, seconded by Petersen, and unanimously carried to authorize the complete water project and to award the water main project to Duininck Inc. at a bid amount of $3,809,246, the elevated storage tank to Caldwell Tanks, Inc. at a bid amount of $593,000, and the remote water meter project to Dakota Supply Group at a bid amount of $157,341 contingent upon PFA financing.

The Council agreed to discuss setting the water rates by resolution at an upcoming special meeting to be determined.

The Council again had a discussion related to lead water service lines and how to address the issue if the contractor happens to discover any when constructing the new water mains. Motion was made by Thomsen, seconded by Petersen, and unanimously carried to not allow the new water mains to connect to any existing lead service lines if discovered during the course of construction.

Motion made by Mundt, seconded by Thomsen, and unanimously carried to approve the St. Dionysius raffle permit.

Motion made by Mundt, seconded by Petersen, and unanimously carried to approve the contract with the Lincoln County Assessor’s Office for assessment services through 2014 at a rate of $8.70 per assessment.

Police Chief John Spindler was present to give his report. Spindler also presented the Council with an estimate for a $1,500 digital sign to place near the intersection of County Road 8 and Highway 14 to help slow down traffic coming into town on Highway 14.

Public Works Director Dean Beck was present to give his report. Beck informed the Council that they had been busy getting things ready for summer and that some branch piles did not get picked up on the first week due to the overwhelming amount placed for pick-up and that they were picked up the following week.

City Attorney Petersen had nothing to report.

City Administrator Tolsma had nothing to report.

Mayor Thomsen had nothing to report.

Motion was made by Denney, seconded by Petersen, and unanimously carried to approve the bills.

There being no further business before the Council, Mayor Thomsen adjourned the meeting at 9:24 p.m. Motion made by Thomsen, seconded by Mundt, and unanimously carried to adjourn.